Plain English Breakdown
The source states the analysis must examine effects on affordable housing production but does not define specific metrics for this examination.
AB-698: Rules for City Taxes on Real Property Sales
This law requires city governments to create and post an analysis of how a new tax on property sales would affect affordable housing before they can pass the tax.
What This Bill Does
- Requires cities, as specified in the bill, to develop an analysis before adopting any transfer tax on real property sales.
- Mandates that this analysis must examine the effect of the proposed tax on the production of affordable housing, including from market-rate projects.
- Orders city legislative bodies to post the completed analysis on their official internet websites.
- States that these rules apply to all cities in California, including charter cities.
Who It Names or Affects
- City legislative bodies
- Charter cities
Terms To Know
- Transfer tax
- A fee charged when ownership of real property, like a house or land, is sold.
- Affordable housing
- Housing units that are priced low enough for people with lower incomes to afford.
- Charter city
- A city in California organized under its own special constitution or charter, which usually has more local power than general law cities.
Limits and Unknowns
- The bill does not say what happens if a city fails to post the required analysis.
- The text does not specify an exact deadline for when the analysis must be posted before voting on the tax.
- The source material mentions cities 'as specified' but does not list specific exemptions.